1.

INTRODUCTION
This document is to demonstrate how CPY intends to control Subcontracting
activities for PROVISION OF DRILLING AND WORKOVER RIG project.

2. SCOPE

2.1 This procedure applies to all Subcontracts that will be awarded during
execution of any Work Contracted by CPY. This procedure defines how to
proceed with the respective responsibilities and the interfaces between
COMPANY, CPY and Subcontractors for the awarding of Subcontracts in the
Project.

2.2 All the activities relevant to Subcontracts preparation shall be appropriately

documented in order to provide a complete audit trail.

2.3 All persons involved in the Subcontracts preparation activities shall maintain
the confidentiality and the security of all information related to the activities
and shall report any breach to management who will take further action

3. DEFINITIONS

MAIN CONTRACT The contract signed between COMPANY and CPY.

WORKS Activities to be delivered by CPY under the CONTRACT.

Procurement CPY Procurement Department Manager

Manager
Project Subcontract Project Subcontract Officer coordinate the subcontracts
Officer activities on the project

SUBCONTRACT Means the approved CONTRACT-compliant Agreement

either for goods or services between CPY and
SUBCONTRACTOR.
Purchase Request Document that, according to an entity requirement,
(PR) defines goods and/or services to be procured, in order to
activate the Procurement Department
SUBCONTRACTOR COMPANY that provides SERVICES or WORKS
defined in the Subcontract to CPY
WORKS & All goods for supply and services to be rendered by
SERVICES SUBCONTRACTOR under the terms of the Subcontract
and all incidental works and services as may be inferred
there from for satisfactory performance in accordance
with the terms and conditions of the Subcontract.
4. ABBREVIATIONS
LOA Letter Of Award Preliminary agreement issued by Project
Procurement Department in order to inform the
Subcontractor about the terms of a contract already
negotiated but not yet issued
RFQ Request For Quotation
RTA Recommendation To Award

5. RESPONSIBILITIES
Project Procurement Coordinator
The Project Procurement coordinator is responsible for ensuring that the
subcontracts preparation services and work process are executed in compliance
with contractual requirements.

He shall interface with all the disciplines and teams participating in the Project
and shall be the single point of liaison and co-ordination with the COMPANY for
all subcontracts preparation matters.

The Project Procurement coordinator reports to the Project Manager.

The Project Procurement coordinator shall coordinate all procurement activities

to ensure compliance with the CONTRACT and the PROCUREMENT
SCHEDULE.

Subcontract Officer
The Subcontract officer shall be responsible to execute all the required operating
subcontracts preparation activities in accordance with the contract and the
received instructions from COMPANY.

Project Support Engineer

He shall be responsible for performing the technical evaluation of bids.

6. ACTIVITIES
The subcontracts preparation work process includes:
 Produce and submit for Company approval, the subcontract procurement
schedule and draft terms for each SUBCONTRACT placed by CPY in
order to execute any of the WORKS for which payment is being made by
Company
 Approved bidder selection, submission of bidder list to Company,
submission of draft SUBCONTRACT, Tender Assessment Report
 production, Tender/Bid evaluation, SUBCONTRACT preparation, award of
SUBCONTRACT.

All events that may have impact on the activities and the schedule of the Project
shall be reported in due time to the Procurement Manager for appropriate
actions.